Old Mutual and Travelers in legal issue - reports

Old Mutual and Travelers in legal issue - reports

News has broken this morning about a potential legal battle between two major insurance players.

Old Mutual, the international savings and insurance banking group which originated in South Africa and which had previously announced plans for a break-up, has issued a statement regarding a legal claim in the US that reportedly involves the Travelers Companies, the US insurance giant, and St. Paul Fire and Marine Insurance Company.

According to the statement, the claim has been lodged with the United States District Court for the Southern District of New York. Old Mutual outlined that the claim involved “pre-existing head office legacy items relating to previously disposed of US assets,” but did not elaborate any further.

“We believe that this action is without merit and we will resist accordingly,” Old Mutual said in a statement, as reported by Stockmarketwire.com.

“We will update the market in due course. We continue to believe that the managed separation remains on track for material completion by the end of 2018.”